A PLEA has gone out for government help to ensure the survival of small hospitality and tourism businesses.

The Federation of Small Businesses (FSB) says more than three quarters of small firms in the sector have taken on debt since the pandemic began.

It wants the government to introduce a tourism and hospitality strategy, led by a minister and focusing on “under-represented” small firms and their long-term survival.

The federation’s report, A Menu For Recovery, also asks for a reduction in the red tape which it says holds back small firms from operating as takeaways and in outdoor spaces.

Nicola Bailey, the federation’s development manager for Dorset, Hampshire and Isle of Wight, said: “With mass closures and restricted openings over the last 15 months, Covid-19 lockdowns have shown just how important our pubs, restaurants, hotels and thousands of businesses in the supply chain are to both the economy and our communities.

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“The ever-rising cost of doing business was already weighing heavy on these firms and the pandemic has only exacerbated it.”

She said the decision to delay the lifting of social distancing rules had “dashed the hopes of thousands of small businesses”.

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“Despite being a vital sector for the economy, tourism and hospitality businesses do not get the attention they deserve, and a new strategy tackling the huge number of challenges facing the sector would go some way to help,” she added.

“We need to ensure that the system is not stacked against them. If businesses want to build on opportunities as they adapt to new ways of working, like expanding their outdoor dining or continuing to operate as a takeaway, they shouldn’t have to jump through hoops to do so.”

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The report says a cut in employers’ National Insurance contributions would help firms as they struggle with staff shortages in the wake of Brexit and the pandemic. It wants the government to extend incentive payments for employers to deliver industry placements beyond July 2022.

Seventy-seven per cent of small firms told the federation they had taken on more debt since the pandemic began.